It comes as the results of a review into the Government’s failed multi-peril crop insurance program are expected in the coming weeks. Former agriculture minister Barnaby Joyce announced $20.2 million for the MPCI program in 2016, offering eligible farmers $2500 rebates for the upfront costs of applying for and securing the insurance. Just 67 farmers have claimed rebates totalling $147,500 since then. Industry had been calling for tax breaks on MPCI premiums of up to 150 per cent as a way to increase interest in the products but Agriculture Minister David Littleproud’s office this week ruled it out. “The Coalition Government has been clear tax breaks — such as a 150 per cent depreciation — are not being considered,” a spokesman for Mr Littleproud said. “The review of the program is finishing and we expect to see advice on it in coming weeks.” The Department of Agriculture began its review last August, while the Government cut $5 million from the program’s budget in December, leaving about $6 million for its final two years.

A department spokesman said the review, which also examined barriers to MPCI, was being finalised. Analysis published by consultants Deloitte, which the department hired to provide advice and run industry consultations, states high insurance premiums as the top reason preventing MPCI uptake, with an estimated 1 per cent of NSW’s winter crop farmers buying the product.

Grain Producers Australia chairman Andrew Weidemann said tax breaks for farmers could have helped to “significantly establish MPCI in Australia”. “It looks like it is coming to an abrupt end,” Mr Weidemann said. “Clearly the current program isn’t working to deliver the outcomes we were expecting.” Source - https://www.weeklytimesnow.com.au